Ann: Successful launch of new lending product, page-5

Watched the webinar recording. Few takeaways for me:

• There is a big drive to attract new customers that is coming (given they want to tone down on spending, I wonder if this will be through more partnerships as opposed to marketing spend?).
• There are a number of products to be launched before December.
• By end of the quarter, we will see the impact the partnership with Square has in terms of capabilities and revenue.
• There are a few announcements planned for this quarter - probably partnerships that have been in the works for some time.
• Customers are driving the development - they are requesting features such as Accounts and Cards which are on the way, as well as supply chain invoicing.
• There is some direct competition yet they are far behind in terms of development - Zeller specifically mentioned (trying to get APRA approved currently to provide instant loans to businesses funded by a $50 mill cap raise). Specifically mentions that often competitors become partners - how Square was seen as a competitor and now a partner.
• Platform upgrade was critical to the 12 month line of credit capability. The upgrade involved a number of automation improvements to increase capacity without need to hire more.

Some issues I see going forward:

• Profitability while scaling. How many customers is it going to take to be breakeven while necessary platform upgrades take place repeatedly to accustom for growth? Development work is capital heavy!
• Zeller will just take marketshare - how Splitit's entire business model was taken and used by the banks who created their own BNPL capabilities. Zeller sells their terminals in Officeworks for $300 so probably already taking marketshare without realising.
• Low capital - needs a raise to grow as it isn't producing enough revenue to sustain itself.